Straits Times explains why the lay-offs happened and what tech workers can do about it.

[k1976]

https://www.straitstimes.com/singap...ore-laying-off-people-and-is-it-going-to-stop

Why are more tech layoffs happening?​

Restructuring, rising employment cost and slow growth forecast are among factors leading to job cuts.

UOB senior economist Alvin Liew said the “earlier rounds of retrenchments” may have been caused by a combination of economic uncertainty, rising interest rates and cases of overhiring during the pandemic.

But the underlying factors most likely have evolved due to the rise of the application of artificial intelligence (AI),” he noted, adding that the retrenchments have not been limited to Singapore and have been taking place in key global tech centres since 2022.

Mr Faiz Modak, associate director for tech and transformation at recruitment firm Robert Walters Singapore, said that while many firms “hired aggressively” after the Covid-19 recovery phase, the global market witnessed a slowdown in 2023.

Companies want to focus on profitability and productivity, so they are “consolidating their workforce with a right-sizing approach”, he added.

 

[k1976]

What is happening to the tech landscape?​

The landscape has changed, said CGS International economic adviser Song Seng Wun.

Companies answerable to their board members... have to become a bit more ruthless in managing their costs, especially since the cost of money is no longer as free as it used to be.”

He was referring to the impact of inflation and climbing interest rates on companies, which used to borrow money at almost close to zero interest. In short, it is more expensive to borrow money now.

Additionally, he noted a very competitive landscape where brands are “catching up on quality” and are able to sell their products at cheaper prices.

So it all boils down to whether there is demand for these “modern services” and if customers are paying for them, Mr Song told ST.

He said when companies stop making money on a particular product, coupled with pressure from board members and shareholders, it makes a case for cutting certain divisions and finding something new. “So it’s very brutal in that sense.”

Shorter business cycles where consumers demand quick product replacements have posed challenges as well.

“It’s less about a recessionary condition unfolding, but more cases of consumers being faced with a lot of choices, so they can be more selective in what they are spending on,” Mr Song said.

 

[k1976]

What type of tech roles will bear the biggest impact?​

UOB’s Mr Liew said jobs displaced by AI within tech companies could likely be in the traditional areas of communications, customer services, basic programming, basic data analysis and financial reporting.

Meanwhile, Mr Modak noted that most of the jobs impacted within the tech industry would be support functions or operational roles that can be offshored to lower-cost locations such as the Philippines, Vietnam and India.

“We have also witnessed some software engineering functions being impacted at tech start-ups as funding from venture capitals have been conservative. As a result, the start-ups are focusing on generating profits to encourage further rounds of investment,” he added.

Mr Modak also noted that the banking and finance sectors, which have been major players in hiring tech professionals, have slowed recruiting in Singapore and are looking at offshoring some roles to markets like India, Thailand and Dubai.

 

[Loofydralb]

Dumb assholes gets played out again and again.
If it were me, I would put in some lines of code that will require me to validate it, so that the software continues smoothly. I will also make sure it is documented officially and bury that in tonnes of lines of records and get my superior to sign off on it.
Upon my dismissal, good luck to the company for screwing me.
Everything is above board.

 

[Truthspeak]

The elites are building a digital prison to enslave the slaves and the slaves are helping them to build this digital prison

 

[Leongsam]

Layoffs are occurring because Elon Musk clearly illustrated that laying off 80% of the workforce in a tech company would actually make things a lot better.

 

[k1976]

Dumb assholes gets played out again and again.
If it were me, I would put in some lines of code that will require me to validate it, so that the software continues smoothly. I will also make sure it is documented officially and bury that in tonnes of lines of records and get my superior to sign off on it.
Upon my dismissal, good luck to the company for screwing me.
Everything is above board.

Whatever we do during office hour or with company resources, all becum company property, u know?

The only thing that belong to u r the littlse backdoors that we buried in millions line of code

 

[birdie69]

Wh

Whatever we do during office hour or with company resources, all becum company property, u know?

The only thing that belong to u r the littlse backdoors that we buried in millions line of code

Why SPH no lay off despite losing so much money every year and depending on tax payers money $180m per year donation to survive?